Texas is suing Netflix. The state claims the streaming giant collected user data without permission. This includes data from children. Texas Attorney General Ken Paxton announced the lawsuit. He says Netflix "spied" on its users. The company records and sells information about user behavior. This happens despite Netflix’s claims to the contrary.
Every action a user takes on Netflix became a data point. This data revealed personal information. The lawsuit states Netflix used "addictive" design. Features like auto-playing shows kept people hooked. The company also logged user activity extensively. Billions of technical events were recorded. These included what users clicked and how long they watched.
In 2022, Netflix began sharing this data. It shared information from children and families. This data went to commercial data brokers. The brokers helped Netflix raise billions of dollars. The lawsuit claims Netflix sold subscriptions as a way to escape big tech surveillance. It promised users they could avoid tracking. Texans trusted this offer. The lawsuit states Netflix broke this promise.
Attorney General Paxton believes Netflix violated Texas law. This includes the Texas Deceptive Trade Practices Act. This law prohibits false or misleading business practices. The attorney general wants Netflix to delete collected data. He wants the company to stop processing data for ads. He also wants auto-play turned off by default for children’s profiles.
Netflix denies these allegations. A Netflix spokesperson called the lawsuit "inaccurate and distorted." The company stated it takes member privacy seriously. It also said it follows all privacy laws. Netflix plans to challenge the lawsuit in court. This case comes as many platforms face scrutiny. There are concerns about features that keep users engaged unhealthily. Experts believe similar lawsuits could follow.
The Texas lawsuit concerns economic practices. It highlights the value of user data. This data is a key asset for many digital companies. Companies like Netflix sell subscriptions for content. They also collect data for advertising. This lawsuit questions how that data is collected and used. It focuses on transparency and consumer trust. The outcome could set new rules for data privacy in Texas.